Hyprop Investments's acquisition of a majority interest in a R450m lifestyle retail centre to be developed in Modderfontein, east of Johannesburg, has been welcomed by analysts.

Hyprop - which owns Canal Walk in Cape Town, Southcoast Mall in KwaZulu-Natal and The Glen, Hyde Park and Rosebank Mall shopping centres in Johannesburg - said on Monday it had acquired 17ha of land from Heartland Properties, a division of AECI.

Hyprop said the 60,000m² Greenstone Lifestyle Centre would be developed by Abland and would complement the neighbouring 75,000m² Greenstone Mall currently under construction.

Retail lifestyle centres combine open-air shopping with features such as show rooms, family entertainment facilities and health facilities such as fitness centres, as well as street-level parking.

Angelique de Rauville, MD of Investec Listed Property Investments, said the acquisition was "good for Hyprop as far as diversification" was concerned.

De Rauville said Canal Walk made up more than 20% of Hyprop's total asset base, which meant a significant portion of the company's performance hinged on that of Canal Walk.

She said the Greenstone Lifestyle Centre would reduce this risk.

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge